Remove Cash Flow Remove Efficiency Remove Presentation
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Case Math

Tom Spencer

Net Present Value: The NPV of an investment is the present value of the series of expected future cash flows generated by the investment minus the cost of the initial investment. Where r = discount rate; CFt = expected cash flow in year t; CFn = expected cash flow in final year; g = long term cash flow growth rate.

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Stop Focusing on Profitability and Go for Growth

Harvard Business

The Refresher: Net Present Value. See More Videos > See More Videos > To elaborate, a company’s intrinsic equity value reflects the long-term cash flows that shareholders expect to receive over time, discounted at the appropriate risk-adjusted cost of equity capital. Related Video.

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Severe Weather Threatens Businesses. It’s Time to Measure and Disclose the Risks

Harvard Business

Even if a business knows how normal weather affects its earnings, unexpected abnormal weather events present their own risks. When weather conditions are on average adverse over days, weeks, or entire seasons, shortfalls in sales cause reduced cash flows and can lead to financial distress and business failure.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business

These barriers, however, can be overcome by changing how hospitals acquire new technology and by providing incentives to units to use digital innovations to provide more effective and efficient care. Barrier 1: Unaligned budgeting units. Hospitals are typically organized by clinical departments (e.g., pharmacy, radiology, pathology).

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

The second item in a firms’ financial disclosures should be a detailed statement of outlays, presented in three broad categories. The company should separately present fixed and variable costs, and to the extent possible, detail the variable costs associated with a unit of activity.

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The Comprehensive Business Case for Sustainability

Harvard Business

Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. Significant cost reductions can result from improving operational efficiency through better management of natural resources like water and energy, as well as minimizing waste.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. “The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. The Refresher: Net Present Value. How can you boost your financial acumen?

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